The European Commission has cleared the acquisition of Scottish Power, a UK energy company, by Iberdrola, a Spanish energy company, under the EU Merger Regulation. The Commission's examination of the transaction found that the horizontal overlaps between the activities of Iberdrola and Scottish Power are limited to the trading at European level of so-called "financial" electricity and CO2 emissions rights. Thus the companies' combined position in both markets is very limited and therefore raises no contentious issues. In line with earlier decisions the Commission disregarded the implications of possible State aid on the assessment of the financial strength of the notifying party.